OYO Parent PRISM Files Updated IPO Papers, Seeks to Raise ₹6,650 Crore Through Fresh Issue

PRISM, the parent company of hospitality technology platform OYO, has moved a step closer to its public market debut by filing its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the Securities and Exchange Board of India (SEBI).

Hospitality-Tech Company Plans to Use Majority of IPO Proceeds for Debt Repayment as Strong Financial Performance Strengthens Listing Prospects

PRISM, the parent company of hospitality technology platform OYO, has moved a step closer to its public market debut by filing its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the Securities and Exchange Board of India (SEBI). The company is looking to raise up to ₹6,650 crore through a fresh issue of equity shares, with no Offer for Sale (OFS) from existing shareholders.

The updated filing follows the confidential Draft Red Herring Prospectus submitted in December 2025 and reflects the company's continued efforts to strengthen its balance sheet, reduce debt and support future global expansion.

Fresh Issue Reflects Growth-Focused Strategy

Unlike many large IPOs where promoters and early investors partially exit through an Offer for Sale, PRISM's proposed public issue consists entirely of a fresh issue of shares.

This means existing shareholders—including SoftBank's SVF India Holdings, founder Ritesh Agarwal, Microsoft, Airbnb, Peak XV Partners, Lightspeed, Greenoaks Capital, Khazanah Nasional, Star Virtue Investment and several global institutional investors—are not diluting their holdings through the IPO.

The structure indicates that the primary objective of the offering is to raise growth capital for the company rather than facilitate investor exits.

PRISM has also retained the flexibility to undertake a pre-IPO placement of up to ₹1,330 crore before filing the final Red Herring Prospectus. If completed, the amount raised through the private placement will reduce the size of the fresh issue.

Majority of Funds Earmarked for Debt Reduction

A significant portion of the IPO proceeds has been earmarked to improve the company's financial position.

According to the filing, approximately ₹4,987.5 crore will be utilized for repayment or prepayment of existing borrowings. Reducing debt is expected to lower finance costs, improve cash flows and enhance the company's ability to invest in future expansion opportunities.

The remaining proceeds will be allocated toward general corporate purposes, including investments in technology, operational improvements and strategic growth initiatives.

A stronger balance sheet could also improve the company's financial flexibility as it expands across domestic and international markets.

Strong Financial Performance Ahead of Listing

PRISM enters the IPO market after reporting a sharp improvement in its financial performance.

For the nine months ended December 31, 2025, the company generated ₹6,941 crore in revenue from operations, exceeding its entire FY25 revenue of ₹6,259 crore.

Profit after tax rose significantly to ₹748 crore during the nine-month period compared with ₹245 crore reported for the full FY25 financial year.

Operating profitability also improved substantially, with EBITDA increasing to ₹2,127 crore, more than double the previous year's level.

The stronger financial performance demonstrates the company's increasing operational efficiency and growing contribution from its global business portfolio.

Global Hospitality Platform Continues to Expand

Since its inception in 2012, PRISM has transformed itself from a budget hotel platform into a diversified hospitality technology company operating across hotels, vacation homes, serviced apartments and alternative accommodation.

As of December 31, 2025, the company operated 43 hospitality brands across more than 35 countries, managing:

More than 24,300 hotels
Over 124,600 vacation homes
Nearly 144,600 hospitality listings
Around 14,900 storefronts in India

The company has served more than 119 million unique customers, making it one of the largest hospitality platforms operating across multiple international markets.

India Business Shows Healthy Momentum

PRISM continues to strengthen its presence in India through its company-serviced hotel model, where it manages hotel operations directly through lease and management agreements.

The number of company-operated hotel storefronts increased from 1,053 in March 2025 to 1,573 by December 2025.

Gross Booking Value (GBV) generated by these hotels reached ₹1,346 crore during the first nine months of FY26, representing approximately 65% growth over the previous financial year.

Company-serviced hotels now contribute nearly half of the company's domestic booking value, highlighting their increasing importance within PRISM's business model.

North America Emerges as Largest Growth Engine

The acquisition of G6 Hospitality, owner of the Motel 6 and Studio 6 brands, has significantly strengthened PRISM's position in the United States and Canada.

The North American business generated a Gross Booking Value exceeding ₹12,000 crore during the first nine months of FY26, representing growth of more than 150% compared with the previous financial year.

The US business now contributes over 52% of the company's global Gross Booking Value, making it PRISM's largest regional market.

The acquisition has diversified the company's revenue streams and reduced its dependence on any single geography.

Europe Presents Significant Long-Term Opportunity

PRISM has also continued expanding its European vacation rental business through brands such as Belvilla, DanCenter and CheckMyGuest.

The number of homes and listings across Europe increased substantially during the year, reflecting growing demand for holiday rentals and alternative accommodation.

Despite this expansion, the company estimates that it currently serves less than 1% of the European vacation rental market, indicating considerable long-term growth potential.

IPO to Be Closely Watched by Investors

PRISM's public offering is expected to be among the most significant technology and hospitality sector IPOs in India.

Unlike its earlier listing attempts, the company now approaches the capital market with stronger profitability, improved operating metrics, diversified international operations and a clear strategy focused on debt reduction and sustainable growth.

For investors, the IPO offers exposure to a global hospitality technology platform benefiting from increasing travel demand, digital booking adoption and expansion across hotels, vacation rentals and serviced accommodation.

The market will now closely monitor SEBI's review process, the company's valuation, final pricing details and listing timeline as PRISM prepares for one of the most anticipated IPOs in India's hospitality sector.